# Reporting paid-in capital The following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight forwarder, at October 31, the end of the current fiscal year: Prepare the Paid-In Capital portion of the stockholders’ equity section of the balance sheet using Method 1 of Exhibit 8. There are 375,000 shares of common stock authorized and85,000 shares of preferred stock authorized.

### Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124

Chapter
Section

### Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124
Chapter 13, Problem 17E
Textbook Problem
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## Reporting paid-in capitalThe following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight forwarder, at October 31, the end of the current fiscal year:Prepare the Paid-In Capital portion of the stockholders’ equity section of the balance sheet using Method 1 of Exhibit 8. There are 375,000 shares of common stock authorized and85,000 shares of preferred stock authorized.

To determine

Prepare the paid-in capital portion of the stockholders’ equity section of the balance sheet.

### Explanation of Solution

Stockholders’ Equity Section: It is refers to the section of the balance sheet that shows the available balance of stockholders’ equity as on reported date at the end of the financial year.

Prepare the paid-in capital portion of the stockholders’ equity section of the balance sheet.

 Incorporation PLG At the end of fiscal year October 31 Stockholders’ equity section (Partial balance sheet) Particulars Amount (\$) Amount (\$) Amount (\$) Paid-in Capital: Preferred 2% Stock, \$120 par (85,000      shares authorized, 70,000 shares issued) \$8,400,000 Excess over par

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